Study Shows Five Texas Cities Among Top 10 Where $100K Salary Stretches Furthest

A recent study shows five cities in Texas out of the Top 10, where a $100,000 salary offers the most purchasing power.

A recent study by financial technology company SmartAsset has revealed the cities where a $100,000 salary offers the most purchasing power, with half of the top 10 cities located in Texas.

Texas cities dominate the top 10 list, with Corpus Christi, San Antonio, Lubbock, Houston, and El Paso. The state’s tax-friendliness, particularly its lack of state income taxes, likely contributes to its attractiveness for residents seeking financial stability. However, it’s important to note that Texans still face federal income tax and contend with some of the highest property taxes in the country.

The study’s findings align with broader migration trends, with Texas ranking as the top destination for Gen Zers in 2022, according to Zillow’s analysis of migration data.

Topping the list is El Paso, Texas, where a six-figure income translates to approximately $88,840 after factoring in taxes and living expenses. The city’s lower-than-average cost of living, particularly in housing, contributes to its high ranking on the list. Data from RentCafe shows that homebuying and renting costs in El Paso are nearly 30% cheaper than the national average.

In contributing to the Lone Star State’s prominence, its tax policies play a significant role, benefitting from its lack of state income taxes. Nevertheless, residents contend with substantial federal income taxes and grapple with some of the nation’s highest property taxes.

It seems that younger Americans are increasingly recognizing the financial advantages of relocating to Texas. Zillow’s analysis of migration data for 2022 reveals that Texas secured the top spot as the preferred destination for Gen Zers—individuals born between 1996 and 2004.

Here are the top 10 cities where a $100,000 salary goes the furthest:

El Paso, Texas
Oklahoma City, Oklahoma
Memphis, Tennessee
Corpus Christi, Texas
San Antonio, Texas
Lubbock, Texas
Tulsa, Oklahoma
Jacksonville, Florida
Houston, Texas
St. Louis, Missouri

While lists like these can be helpful for individuals considering relocation, personal preferences, and individual circumstances should also be taken into account.